VF Corporation (NYSE:VFC) today reported financial results for its third quarter ended Sept. 28, 2013. All per share amounts are presented on a diluted basis.
“Adjusted” amounts refer
to non-GAAP measures as described in the “Adjusted Amounts” paragraph
at the end of this news release.
“VF is at its best when we empower our brands to deliver
innovative products, connect with consumers, and operate with efficiency
and discipline,” said Eric Wiseman, VF Chairman and Chief Executive
Officer. “Our third quarter results validate our growth strategy and our
ability to deliver strong results in a challenging economic
“Our solid year-to-date results allow us to make significant,
incremental brand investments while still delivering on our long-term
earnings growth target,” continued Wiseman. “The announced 21 percent
increase in our dividend and stock split demonstrate the confidence we
have in our ability to consistently generate strong returns for VF
Third Quarter 2013 Review
Revenues rose 5 percent to $3.3 billion,
compared with the same period of 2012, led by Outdoor & Action
Sports, Jeanswear, and our International and Direct-to-Consumer
businesses. Changes in foreign currency exchange rates positively
impacted total reported revenue growth by approximately one percentage
point during the quarter.
Gross margin improved 90 basis points to 47.6
percent, compared with 46.7 percent in the same period of 2012. With
improvements in nearly every coalition, the higher gross margin reflects
the continuing shift in our revenue mix toward higher margin businesses
and moderately lower year-over-year product costs.
SG&A as a percent of revenues rose 40 basis
points to 30 percent in the third quarter. This increase includes an 80
basis point impact from higher marketing investments to support our
largest and fastest growing businesses.
Operating income on an adjusted basis grew
6 percent to $582 million in the third quarter, compared with $551
million in the same period of 2012. On a GAAP basis, third quarter
operating income increased 8 percent to $580 million, compared with $537
million in last year’s same period.
Adjusted operating margin was
17.7 percent, compared with 17.5 percent in the third quarter of 2012.
On a GAAP basis, operating margin rose to 17.6 percent from 17.1 percent
in last year’s period.
Net income on an adjusted basis grew 11 percent to $436 million in the third quarter, compared with $393 million in the same period of 2012.
Adjusted earnings per share –
which excludes items related to the acquisition of The Timberland
Company (“Timberland”) of $0.02 per share in the third quarter –
increased 11 percent to $3.91 per share from $3.52 per share during the
same period last year. Last year’s third quarter adjusted earnings per
share of $3.52 excluded $0.10 per share in Timberland
acquisition-related expenses. On a GAAP basis, third quarter net income
was up 14 percent to $434 million or $3.89 per share.
By press release
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